The Chicago Purchasing Managers Index came in much weaker than expected, printing at 52.7, less than the consensus estimate of 56.5. Markets quickly plunged on this reading, as the Chicago PMI is generally a good leading indicator for US growth as a whole. This weak reading comes on the back of other weak data this morning, including initial jobless claims, ADP employment survey, and the first quarter GDP report.The data is continuing to show a slowdown in the US economy.

Markets have dipped lower on the news, with the S%P 500 (NYSE: SPY) falling about 8 points on the release and has continued to move lower, now down over 10 points at 1303.19. The NASDAQ (NASDAQ: QQQ) has also fallen hard and is down almost 1% now at 2809.84. The VIX (NYSE: VXX) has spiked on the news, following yesterday's 15% gain. Investors are buying protection as markets become more volatile, and the VIX is reflecting this. Bonds (NYSE: TLT) rallied and yields fell on the news, with the benchmark 10-year yield dropping below 1.6% for the first time since World War II. The dollar index (NYSE: UUP) is down slightly now, with a majority of the weakness being attributed to Yen strength (NYSE: FXY), with most other dollar crosses near flat on the day. Gold (NYSE: GLD) and Silver (NYSE: SLV) are both down on the news, following the risk off sentiment.